Israel-Gaza War, Bank of Israel, Economy

Bank of Israel Cuts Interest Rate by 0.25% Amid Cautiously Optimistic Forecast

After increasing interest rates over the past few years to curb inflation, the BoI cut the rate by 0.25% amid cautious optimism about inflation and the Israeli economy generally.

Cutting rates amid cautious optimism about the Israeli economy. (Photo: Chaim Goldberg/Flash90)

The Bank of Israel announced a reduction of the interest rate by 0.25% to 4.5%, amid a cautiously optimistic forecast for the Israeli economy, even following the downturn caused by the war.

In the report accompanying the announcement, the BoI noted that inflation in most goods and services had either declined into the target range of 1-3% or come close to that range. The report states that the annual rate of inflation will decline to 2.4% in 2024 and 2% in 2025.

In reference to the war, the BoI's report noted that its forecast is based on the fighting being contained to the southern front, and while it stated that the government's budgetary decisions to deal with the war create significant uncertainty, it nevertheless did not revise its forecast downward.

The report noted that while they are improving, investment and consumption remain significantly below pre-war levels and in comparison to the rest of the world. The BoI nevertheless forecasts that GDP will be back to 5% by 2025.

Bank of Israel Economy Interest Rates Operation Swords of Iron

Comments

Do not send comments that include inflammatory words, defamation and content that exceeds the limit of good taste.

The comment was sent successfully.
Soon the response will be examined by our editors and if it is found to be correct it will be published on the website.
The comment was sent successfully.
Soon the response will be examined by our editors and if it is found to be correct it will be published on the website.


Does the Civilian Population Stay or Go?

IDF: Our aim is to clear all of northern Gaza of terrorists. What comes next?
Avi Woolf | 17:02

How Chris Martin broke my heart

I used to LOVE Coldplay's Chris Martin – but then he did this
1
| Gila Isaacson | 12:58

An alternative way to get our hostages back?

Netanyahu is offering Hamas captors millions of dollars per hostage they release- Here's what we know
1
| Gila Isaacson | 12:44

Don't Anger Half the Country, Israel

Public prayers for Trump are dangerous for Israel
2
| Arye Yoeli | 11:10

Female IDF hero soldiers

Sneek peak into what it's really like to be a female IDF sniper 
Gila Isaacson | 04.11.24

Desperately trying to recruit Haredim

800 Haredi men could go to jail for ignoring IDF summons
Gila Isaacson | 04.11.24

Harris is a disaster for Israel

HEAR ME ROAR: Why no self-respecting Jew will ever vote for Kamala Harris
Gila Isaacson | 04.11.24